Will Market Participants Wait and See How Much the Euro Can Recover Against the U.S. Dollar?
23.05.2025
- Germany's First-Quarter GDP
- Remarks by Federal Reserve Board Member Cook
In U.S. currency trading the previous day, the Canadian dollar emerged as the strongest currency toward the end of the U.S. trading session. The CAD/JPY pair rose from 103.122 to 104.074. The price moved from the -2σ to the +3σ levels of the hourly Bollinger Bands.On the 4-hour chart, the pair is searching for direction just below the 200 SMA support line, while on the daily chart, it is attempting to break above the 20 MA, which is acting as resistance.
European currencies saw the euro fall against the U.S. dollar, despite the German IFO Business Climate Index for May—released yesterday—improving to 87.5 from 86.9 the previous month.The euro/dollar pair fell from 1.1344 to 1.1256. A decline along the 20-period moving average on the hourly chart was observed. On the 4-hour chart, a pullback from the +2σ level of the Bollinger Bands has occurred, and on the daily chart, a decline from this month’s high range is evident.
Today’s economic indicators include Japan’s national consumer price index at 8:30, UK retail sales and Germany’s first-quarter GDP at 15:00, France’s consumer confidence index at 15:45, Canada’s retail sales at 21:30, and remarks by U.S. Federal Reserve’s Musalem at 22:35:Statement by St. Louis Fed President Musalem, and Statement by Kansas City Fed President Schmidt; at 23:00, U.S. New Home Sales; and at 25:00, a statement by Fed Governor Cook. We intend to cautiously monitor the euro’s potential for recovery against the U.S. dollar following its recent decline.
Author: Keisuke Sakurai
